Thursday, March 05, 2009

That flushing sound you hear...


...is the sound of some $13 billion in tax payer funded loans going down the toilet. After a series of huge loans to General Motors, it sounds more and more likely that they will have to declare bankruptcy anyway...

General Motors Corp.’s auditors have raised “substantial doubt” about the troubled automaker’s ability to continue operations, and the company said it may have to seek bankruptcy protection if it can’t execute a huge restructuring plan.
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GM has received $13.4 billion in federal loans as it tries to survive the worst auto sales climate in 27 years. It is seeking a total of $30 billion from the government. During the past three years it has piled up $82 billion in losses, including $30.9 billion in 2008.


A company that has lost $82,000,000,000 over the last three years SHOULD go bankrupt and start over!

We could have done that months ago and saved the taxpayer exposure to billions in loans. A lot of the blame for this falls on Bush, not because of the failure of GM but because of the ill-conceived loans that were extended in the first place. The Federal government cannot keep its own house in order, it has no business bailing out businesses or industries with our money. The best thing that GM can do, and the only thing that makes sense, is to reorganize under bankruptcy protection, tear up those crazy union contracts, dealership agreements and other onerous burdens and start afresh as a leaner, more cost effective company. In the state of the U.S. these says we cannot afford to have GM as a perpetual ward of the state that can only survive if it receives constant financial backing from Uncle Sam.

2 comments:

Ken said...

Well said!

Arthur Sido said...

Ken,

See the next post up, things are bad and getting worse.